Data Patterns (India)’s share price shot up 18.53% on Monday’s early trades to reach an intraday high of ₹ 1,379.00 apiece after the company reported a strong performance in the December quarter. Its shares were trading at ₹ 1350.00 apiece, up 16.04% at 12:41 PM.
Data Patterns was one of the biggest gainers in the A group of shares, apart from Aegis Logistics, AGI Greenpac Ltd, Vodafone Idea Ltd and Indus Towers Ltd.
The defence and aerospace electronics solutions provider’s revenue from operations increased to ₹ 111.81 crores in the December quarter (Q3FY23) from 43.84 crores in the corresponding quarter last year, up 155% year-on-year (YoY). Its profit after tax (PAT) climbed a whopping 272% to ₹ 33.32 crores in the latest quarter against ₹ 8.96 crores reported in the corresponding quarter a year ago.
The company in an exchange filing said that it has healthy orders of ₹ 890.40 crores in hand, as of date. With the expectation of new orders in the January-March quarter (Q4), the management said it is focused on improving execution effectiveness to promote operating leverage and maintaining a diversified order book.
“With the new manufacturing facility anticipated to commence in Q4FY23, we are well positioned to benefit from the strong sectoral tailwinds given our R&D prowess and our manufacturing capabilities,” it added.
Its shares have given multibagger returns of 110.77% in the past seven months as its share price increased from ₹ 640.50 on June 30, 2022, to the current levels. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares seven months ago, the value of their holdings would have been ₹ 2.10 lakhs today!
Data Patterns is one of the fastest-growing companies in the defence and aerospace electronics sector in India. It has proven in-house design & development capabilities and experience of more than three decades in the sector. It works closely with government organisations like DRDO and ISRO, as well as defence PSUs like Hindustan Aeronautics and Bharat Electronics.
The company has a market capitalization of ₹ 6,036 crores and is a small-cap company. It has an ideal return on equity of 24.02% and an ideal debt-to-equity ratio of 0.02. Its shares are trading at a price-to-earnings ratio of 56.55, which is significantly higher than the industry average of 36.79, indicating that the stock might be overvalued as compared to its peers. This could also mean that investors are willing to pay a higher price for its future earnings.
Written by Simran Bafna
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